Chevron To Downstream Business By Selling Texaco Stations In Nigeria

New York, NY (AHN) - Days after Movement for the Emancipation of the Niger Delta [MEND] announcement of "state of war" and after an attack on a unit of Royal Dutch Shell Plc, Chevron Corporation decides to downstream business in the region.

Chevron Corporation announced on Friday that it has agreed to sell Chevron Nigeria Holdings Limited to Corlay Global S.A, a Panamanian company owned by an African-based consortium.

The consortium consists of companies including MRS Holdings Limited and Petroci Holdings.

"This sale is in line with our ongoing effort to concentrate downstream resources and capital on strategic global assets," Mike Wirth, executive vice president, Global Downstream at Chevron, said in a statement.

"We are increasing efficiency and improving returns by shrinking our marketing footprint to better align with our refining operations."

Downstream operations at a global company includes every step of production, that is, from the generation of gasoline to the point of sale in the market.

Under the deal, the San Ramon company is looking to sell its ownership in 400 gas stations, out of which 350 of them are under the Texaco brand. The firm had purchased the White Plains, N.Y.-based Texaco company in 2001 for around $44 billion.

Although no additional details of the transaction were disclosed, the company said the agreement is subject to Bermuda regulatory consent and "is expected to close quickly."

Shares of the firm were trading higher by $4.47 or 5.4 percent at $87.35 on New York Stock Exchange on Friday.